All Forum Posts by: Dwayne Gilbert

I really appreciate the feedback and help from all of you. The buyer is already qualified and ready to sign the paperwork for the loan for the property. They are approved for the entire 152,000. I can redo the agreement with the seller or whatever if necessary because I have built a great relationship with both parties. 

Originally I offered them 105k to help sell it quickly even though it isn't distressed it's just a motivated seller. Once I realized how hot the market was here I put that up to 125k and I was to cover the costs so they would leave with that minus the current mortgage they owe. 

@David Lee Hall, III i did read about it doing that to a title before while researching and that totally makes sense. My intention is not at all to tie up or clout any deed. My only intention is to learn a method for making this deal happen with a conventional seller while doing a wholetale sort of deal. I wouldn't mind getting paid at the same time if at all possible, though I am still at a bit of a loss on how to do that. 

I have called just a couple of local settlement companies and so far 2 of them have told me they have no clue what a double close or assignment or anything is. Likely turkeys with whom I have to just keep looking, but strange none the less. I also don't necessarily mind doing a double close and paying the double fees, however, that's a very nice chunk of change.

Please understand, my intention is not at all to skip paying taxes or fees. It isn't to be a prick and clout a title for any reasosn or length of time. I am not trying to get around anything either. What I am trying to do is better understand how to make deals like this work, the options that are available, ways to operate legally as an investor, and hopefully to legally pay the least in fees, make the most for myself and the seller, and provide the buyer with a great deal, as well. All of which has happened so far. The sellers are walking away with enough to pay capital gains tax, the buyer is stoked to get the property at the price he did, especially after looking for so long. No one loses anything or such, everyone wins, and hopefully I'll make a profit also. 

More than anything I llike the challenge and education. Please keep it coming guys. I appreciate it. So double close or memorandum? Simple purchase and sales agreement then assign it or just assign the current option to purchase? What would you do in this situation with a buyer qualified to purchase, a seller anxious to sell, both parties great with the terms and conditions, just need to figure out how to make the closing happen, get by the seasoning rules, or help him find a new loan that has better seasoning rules, and all that while also being able to legally get paid for my work and not get labeled as a broker, realtor, or anything else other than an investor with an equitable interest via my contract.

@David Lee Hall, III you totally rock my friend. I had learned about the option agreement method however, had one hell of a time finding out exactly how to go about doing it with the memorandum and such. So if I understand you correctly, I now take my option to purchase agreement to the courthouse and file it with the recorder of deeds. Then the person who wishes to purchase the property simply pays me a release fee for that original contract. Then I go and pay to have the memorandum removed. Seems like it solves my problems of double closing and fees as well as dealing with the seasoning problems. 

I am curious what it is that makes it shady in your opinion? I personally haven't done a ton of deals yet, however, I always explain everything to everyone I deal with. So for this deal for example, both the current owner and the future owner know where I stand and what my role is as an investor, as well as the contract expectations, prices, and everything else. 

Now my next question would be this. My original contract is for 125,000. I am to cover the closing costs for the seller out of my earnings, which I don't have any issues doing. Now I don't know how that will factor into things if the future owner simply pays me. How do I set this all up that the new mortgage provides all the funds necessary for the entire deal to happen? I understand I am going to have to have a few conversations with loan officers, and I will absolutely look for a local broker to help, so eventually I will find someone who gets it and plays ball and provides the best rates possible. 

The new owner has agreed to pay 152,000 for the property, however, the problem here is that he doesn't want to write, nor probably has enough money on hand to cover the 27,000 that would be my profits. Now I could take less from him for the half I agreed to pay in closing costs. I will pay whatever is needed and even take way less if necessary to make this happen for both the owners and future owners. 

So basically any more advice about how to go about this is welcome. I cannot say enough how much I appreciate your help David. 

Thanks,

Dwayne

I have the luxury of living in Pennsylvania which is known for its' crazy real estate transfer taxes etc.... So during my education and research I discovered, contrary to all the gurus teachings, that Pennsylvania is a pain with wholesaling as they like to hit people for a double transfer tax which makes it super expensive and many times even impossible to profit from a wholesale deal.

Regardless of all this, I discovered on here that doing an option to purchase agreement and then assigning that agreement was a strategy that many people have been using to effectively wholesale residential real estate in Pennsylvania legally and profitably. Now I have an option to purchase for a house in good condition needing very little repair. The contract is for 125,000 and I have a buyer willing to pay 152,000. So I did an assignment agreement with the buyer and myself. He is wanting to get a USDA loan and to my knowledge that is one type of loan that does not require that the buyer purchase directly from the name on the deed of the property which has to be owned gby that person for a certain period of time.

So his bank is telling him he needs a purchase agreement with myself, which I told the loan agent about the deal, total turkey who doesnt take time to listen. So we did that and he then comes back and tells my buyer that I can't be the one he buys from because of this name on the deed situation. Maybe it's his banks policy or something, but regardless.

I need help on where to go from here. I have a buyer waiting and ready. I have a seller anxious to get it done. What I need to know is how to execute the option to purchase agreement and how to assign it or what type of financing the buyer could get etc.... Any options are welcome. I have scowered this site, google, and youtube for weeks and countless hours trying to find some solution to this.

Please Help in PA,

Dwayne